Sports Betting During A Global Pandemic
How Open-Markets Bring New Options and Innovation for Users Across the Globe
Since the inception of the Covid-19 crisis in early 2020, a number of industries have risen in prominence as global consumers and users have adapted to staying home and social distancing. One industry that has specifically thrived, has been sports betting: As PRNewswire has reported, many companies in the sports betting and gambling industry attest to a 90% increase in revenue year over year, largely attributed to Covid-19. The bottom line suggests that sports betting is popular when people have to stay at home - But what does this trend suggest in the context of innovation and emerging technologies that have the opportunity to revolutionize open markets and the scope of the betting market as a whole?
Sports Betting: A Primer
To fully understand the revolutionary potential for Open-Markets in the sports betting industry, it is first important to understand the magnitude of the market at hand:
- eSports have an estimated addressable market value of $14 billion dollars, featuring over 340,000 monthly active betting users. With viewership, awareness, and platform coverage all increasing across the board, eSports - and specifically betting on eSports events is well positioned for a bright future.
- Regular sports betting, is estimated to have an addressable market of $104 billion dollars with more than 274 million active betting users. Betting on not only primary sports markets, but even fantasy sports markets, has many new players entering the market looking to capitalize on renewed user interest.
ESPN has even created Chalk specifically for sports betting enthusiasts!
- In the United States, Sports Betting is legal in 19 states, with a number of states increasing their push for legalization in light of the Covid-19 pandemic.
“In late April, Morgan Stanley issued an analyst note, which ratified their consistent estimations and expectations from the legal online sports betting market in the United States. Online gaming and digital products, the message carried, will bring growth to what has long been considered a mature […] brick-and-mortar casino market through 2025”
In short, sports betting, much like the legalization of cannabis and other recently legalized recreational activities, is on the rise for retail traders and sports fans around the world. Not only is this trend poised to increase in the future, but new technologies have the opportunity to drastically expand its core base of services.
Open-Markets In Context: A New Horizon of Innovation
As Sports Betting heats up around the world, new innovation in blockchain and open-source protocols has created the possibility for creating the world's first open, permission-less, and decentralized marketplace for predictions on any market. Flux Protocol, a Layer 2 solution built on NEAR Protocol, offers one of the world’s first technically sound and comprehensive open-market platforms for developers and users alike to make use of.
Concretely, this means that any person - from anywhere in the world - would have the freedom to create a market that anyone else could place a prediction on an outcome - for any topic relating to a sporting event. The user or developer in question would be able to individually set the parameters for the marketplace. The users or traders, in turn, have no limits on how much they could bet: Beyond the resolution fees built into the protocol design, there is no middle man to function as a gatekeeper or scrape fees from users!
Here Is Why This Matters:
On traditional sports betting apps, centralized companies are forced to adhere to the local regulations of their state or country of origin. In turn, such platforms are also limited in terms of the scopes of the types of markets they usually offer on sporting events: Standard under / over bets, binary results, or score predictions.
New innovation on Flux promises to allow decentralized applications to operate across borders offering any market on any aspect of a sporting event. Thus, consumers will not only be able to bet as much as they want without limit, but the market will also be managed and resolved be decentralized stakeholders and smart contracts built onto the platform.
Most notably, any developer or entrepreneur can create an app for offering prediction markets on any facet of a sporting event: Whether it relates to aspects of the game, the number of fans in attendance, or even more long-tail questions relating to disruptions, injuries, or key plays - open-markets bring new levels of freedom and choice to users increasingly hungry for prediction markets without censorship or centralized control.
Where Do We Go From Here?
As the normal sports betting industry becomes both more popular and more consolidated in the future, room for disruptive innovation is slated to appear: More choice, less fees, easier access, and higher rewards all mean that the future of sports betting is moving towards open-source protocols like Flux. In parallel to this migration, eSports and gaming offer new prediction markets to the next generation of active users, more comfortable with the internet, and the digital innovation cultivated therein.
To learn more about Flux, stay up to date on the Flux Blog, or Telegram Channel: As the protocol moves to launch in the coming months, don’t miss the first open markets that go live for key sporting events like the Super Bowl, March Madness, the Champions League and much more!